W. L. Hon's questions to Daqo New Energy Corp (DQ) leadership • Q1 2025
Question
W. L. Hon inquired about the company's strategy to mitigate the risk of its ADR being delisted from U.S. exchanges. He also asked for the outlook on cash production costs following the sequential increase in the first quarter.
Answer
Executive Anita Zhu addressed the delisting risk, stating that while it's considered a low probability, management is monitoring developments and would evaluate all strategic options, including a Hong Kong listing, to protect shareholder interests if necessary. CFO Ming Yang explained that the Q1 cash cost increase was due to maintenance costs for a shut-down facility and lower production volume absorbing fixed costs. He projected that Q2 cash costs would be similar to or slightly lower than Q1 levels.